Hi all, trying to get a handle on all-in comp, i.e. base+bonus (carry, too, if available) at the Director/MD level (non-rainmaker role but front office). Particularly at small-medium sized RE Debt Funds with ~ $1-$3B AUM.
Focus on NYC firms and assume 15+ years' experience.
What do you mean ‘non-rainmaker’ role? Are you referring to a credit / underwriting role vs originations?
Difference between credit and originations?
Originations is sourcing new loans. Credit / structuring / underwriting is the team that does the full underwriting of the deal and opines on the structural needs to ‘de risk’ the deal. Basically originations is compensated to find business, credit / underwriting / structuring is compensated to protect the downside risk and structure the loan accordingly. Banks generally split their teams up to the the originations team and the credit team (which includes underwriting and structuring). Not every lender does this, but if you see a distinction, this is what it is.
Essentially, yes.
Your question is specific enough and requires someone else with around the same amount of experience that you're going to have a hard time getting good answers here. I certainly don't feel comfortable giving one.
Cool - I used to work closely with the credit / structuring team at a Life Co. Also sat across from the credit teams at many banks while doing deals with them who I got to know. My best guess, and this is straight up just based on what I gathered based on bonus conversations/promotions that they would share with me, but by no means accurate - $350k-$450k. The head of the team made more. I know you were searching for at a debt fund, but I can’t imagine the comp is much different. If anything, the debt fund will probably pay a bit more.
Interesting, I would have guessed a lot more, especially since so many debt funds are under the umbrella of investment banks / PE / HF firms, where the MDs in the other departments (corporate, RE equity, etc) are likely pulling in much more. For ex. somewhere like Canyon's RE debt team fits the OP's size parameter, and I would have guessed an MD there would be pulling in much more
To add to what Pudding said: Despite the fact that credit / underwriting plays a very important role in the deal process — after all, most originators have never seen a deal they didn't like so long as they’re getting paid for it — they are always perceived as a cost center. Few shops properly incentivize their originators to do good deals — it’s all about booking loans — although one shop I worked at was always threatening to claw back the originator’s vig on deals that went bad.
Bump. Any info on carry numbers? [mrcheese321]
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